Understanding Innovation

This assignment delves into the crucial concepts of invention, innovation, and technology commercialization. It requires students to differentiate between these terms and analyze various case studies to illustrate successful technology transfer strategies. The assignment also encourages critical thinking about the challenges and opportunities associated with bringing innovations to market.

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................4
P1 Explanation of innovation and its importance for organisation.............................................4
P2 Support of organisational leadership, culture, vision and teamwork in innovation and
commercialisation.......................................................................................................................5
TASK 2............................................................................................................................................6
P3 4Ps of innovation and use of innovation funnel in order to examine innovative ideas.........6
P4 Explanation of developments in frugal innovation................................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and the application of new product development............8
P6 Innovation business case for 4com company.........................................................................9
TASK 4 .........................................................................................................................................11
P7 Tools used by an organisation to develop, retain and protect intellectual property and
knowledge.................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
It is necessary for each and every organisation to create several new changes in
their products and services which they are offering to their customers in order to improve the
product quality. Innovation and commercialisation are the two main points of in this report, it
can be defined as the process in which changes are being made by the company in order to
improve utility of goods and services for their consumers with the help of developing new
strategies and ideas (Thore, 2012). The commercialisation is in relation with the marketing
activities which helps an organisation in developing products so as to gain advantage of market
by considering different market trends and strategies.
This report is based on 4com company, which a small sized telecommunication company
in UK. The main of the company is to provide innovative services to its customers. This report
will help in understanding the innovation and its importance, 4ps of innovation, frugal
innovation and various tools which are used by an organisation to protect and retain intellectual
property .
TASK 1
P1 Explanation of innovation and its importance for organisation
Innovation can be defined as the process in which change ins made by an organisation in
a particular product to make it more useful for the consumers. In the case of 4com company,
innovation is the way in company make modification in its goods in order to meet the targets of
the organisation in the competitive environment (Snow and et.al., 2011). 4Com company
maintains its culture in regards with innovation so as to make enhanced technical devices by
making new ideas so as to implement it on the products and services of the company. Importance
of innovation for an organisation can be described as follows: Enhance productivity: If the various new innovative ideas will be implemented in the
production process of services and goods, then it will help in increasing the productivity
of the employees as they will be using new techniques and tools. Helps in optimum resource utilisation: Innovation will be helpful in reducing the
wastage regarding organisation's wealth like human, technology and finance. It also helps
in the employee engagement and proper resource utilisation (Walsh, 2012).

 Helps in improving communication: Innovation helps to make flow of information in an
organisation which helps in operating functions properly. It also helps in the proper
coordination, increase employee's morale and develops team work. Proper
communication in 4com will help in understanding desires and needs of company.
 Increases safety and health: Innovation in the goods and services will help to reduce
possibility of accident at the workplace. It supports 4com company to make use of robots
in moving heavy things so as to provide security and safety to employees from serious
injuries. New idea also helps in proving appropriate working conditions to the employees
by which health and safety problems will be reduced (Wonglimpiyarat, 2010).
As per the case of Apple Inc., innovation helps company to grow when they launch iPod,
similarly 4com will also achieve success if they will make innovative business mobile with more
functions. Invention and innovation are different from each other, and this difference can be seen
as:
Innovation Invention
Innovation is implied in the product and
service for the first time.
Invention is being applied to make changes in
the existing product and services.
New idea is being implemented practically. Working of an original idea in theory.
Technical, strategic and marketing skills are
used (Difference Between Invention and
Innovation. 2016).
Scientific skills are used.
Combination of different process and products. Concerned with single process or product.
P2 Organisational leadership, culture, vision and teamwork in innovation and commercialisation
Innovation and commercialisation is not at all possible without the support of company's
culture, vision, teamwork and leadership.
Role of vision in innovation and commercialisation
The vision of the 4com company is to improve the services of communication in UK.
This vision of the company helps them in implementing innovation and commercialisation in
their products and services, as they wants to improve the communication services, so they made
various innovations like they provide business phones supported by 4com's UK based support

and installation. This things helps to raise the demand of business phones among the corporate
clients and other customers.
Role of leadership in innovation and commercialisation
Leadership can be defined as the way which influence professional and personal
characteristics of an employee in an organisation and it also helps them to motivate in order to
achieve targets of the company. In 4com company also leadership helps in the innovation and
commercialisation of the product and services by motivating employees and enhancing skills of
workers like development of team work, implementation of proper communication system, and
with application of effective problem solving models (Thore, 2012). In this role of the director
and guider is very important so as to make coordination among the role of workers and also in
the development of innovative ideas so as to make effective working.
Role of organisational culture in innovation and commercialisation
Culture of 4com company is also responsible for implementing innovation and
commercialisation. Company has a great pride on its culture, they have built their organisation
with the hard work in business and strive and achieve excellence in everything which they are
doing and also contributes in the meaningfully in the community. This kind of hard-working and
supportive organisation helps in the implementation of the innovation and commercialisation
(Walsh, 2012).
Role of team work in innovation and commercialisation
Team work can be defined as the member's cooperation in the achievement of goals and
objective of the company. The 4com company have the positive team work which helps in the
successful implementation of the innovation and commercialisation at the workplace in order to
make effective products and services with the more features, which will helps to provide great
satisfaction to the customers. During commercialisation company offers its products and services
in order to gain profit (Teece, 2010). Apple is on of the forefront company in the sector of
technology, and have made innovation in the old type of music player by proving small size
music player in order to get monetary benefit, and this thing has been successful only with the
help of effective team.

TASK 2
P3 4Ps of innovation and use of innovation funnel in order to examine innovative ideas
It is very necessary for an organisation to have innovation in its products and services in
order to satisfy the customer's need in the market. For the effective innovation in the product 4P's
are there which are used by the 4com company in order to make innovative products. As virgin
and Apple Inc. made success in market with the help of these 4P's by providing innovative
product in market. 4Com will also be able to achieve growth and success (Snow and et.al.,
2011). These 4P's can be described as follows: Product: It can be defined as the physical goods which is being offered by an
organisation to its various customers in order to meet goals and objectives so as to
improve relationship with customers. As there was the demand of business phones in the
market, so 4com helps in satisfying that demand of customers by providing innovative
product. Process: It can be defined as the whole cycle of the product development. In the context
of the 4com, necessary resources have been obtained by the company like funds, human
resources and new technologies. Company was able to produce business phones for the
customers with the help of innovative techniques and tools, and also with the support of
skilled workers who helps in the production activities (Schoonmaker and Carayannis,
2010). Position: This process is similar with the promotion. As virgin company made use of
appropriate tools for the promotion of products and services. 4Com also use such tools
like print media and digital media for the advertisement of business phones.
 Paradigm: It is process which helps in making more fruitful product for the customers.
Paradigm helps in dealing with the addition of new ideas and things in order to improve
the services and goods which is being provided by the company. 4Com company make
use of it, so as to add the good features in business phones.
Innovation funnel helps the company to focus on the desires and needs of the customer
and market trends and also focus on the company's competitors. Mentioned company has the
ability to fulfil the customer's need by providing innovative business phones, which will help
them to reach the good position in the market. It is very important for an organisation to recheck

the techniques and tools which helps in meeting desires of the customers. It also helps in
providing products at the low price to the large number of buyers (Rafinejad, 2007).
P4 Explanation of developments in frugal innovation
Frugal innovation helps in developing new business models, redesigns various products
and reconfigures value chain in order to serve customers who are facing affordability constraints
in a sustainable and scalable manner. It makes involvement of either tapping or overcoming
resources constraints and voids in order to make inclusive market. Frugal innovation helps in
providing functional solutions with the help of various resources (Lindič and et.al., 2011). 4Com
company makes use of frugal innovation which helps the company in many ways, this can be
explained as follows: Helps in the innovating additional characteristic: It is the most important innovation
which is being used by the 4com company, to upgrade and improve goods and services in
order to provide satisfaction to customers and also helps in enhancing profit and market
share of the business. Innovation in the products of 4com will help in providing excellent
experience of gadgets to the customers. For example: company can provide user friendly
software to its customers, which may be helpful for them in order to maintain good
position in the market (Kim and et.al., 2011). Reduce the production cost: Use of frugal innovation helps to reduce the cost of
production, as it supports in the use of new tools and techniques, which will help in
increasing the amount of sales which is gathered by selling products. Production cost can
also be reduced, if the company will be able to obtain raw materials at the low cost.
 Expand product line: 4com company has introduced the latest technology and has full
view of a particular product to reach its customers and the target markets. Frugal
innovation helps the company in increasing its product line, which helps the company to
grow in the market.
TASK 3
P5 Importance of commercial funnel and the application of new product development
Product selling is in relation with commercial funnel. 4Com company is dealing with the
technical gadgets like business phone systems, business internet and broadband, software and
application, calls and lines and business lines. These all products have been made by a company

to satisfy needs of customers. It also includes the marketing. Commercial funnel innovation can
be defined as the process in which 4com company makes investigation of the customers needs
and requirements, starts the development of the product and make shipping of the product to
make them available for the customers (Huizingh, 2011). The main aim of any process or
product development is to have an idea from the concept to reality so as to make the
development of the product which will be helpful in meeting needs to the market in an
manufacturable and economical form. The case study of Apple Inc., helps in displaying that top
position is being hold by the Apple in product making with the use of the latest technology. I-pod
is the latest innovation in the old music players which is being done by the Apple. In a similar
way business phone systems is being developed by the 4com company, which plays an important
role in the modern business and provide many features in addition with calling. Introduction
HiHi is being done in it. It is the UK's business phone system which helps to give experience of
the video. Various stages of commercial funnel like generation of prospects, leading sales, need
identification etc. helps the company to make more better products (Innovation Funnel. 2016).
Commercialisation is the way by which introduction of the new product or service is
being made in the market. Application of the new product development is used for processing
commercialisation of innovation. Development of the new product includes various steps like:
 Idea generation: New idea is generated before the development of the product which
includes whole market research. Idea screening: Idea which is being made will be taken into process of screening so as
to know its affordability and market potential. Testing and development: Idea which is being developed will be tested that whether it
will be able to satisfy consumers needs or not. Business analysis: After the product testing, case of business is being analysed to know
whether the new product will be profitable for 4com or not. Product development: Actual processing of the product will be done, which means
company will be able to investigate exact specification and design and the methods of
manufacturing (Godin, 2012). Commercialisation: Marketing plans and pricing should be finalised in this stage so as to
make product available for the final stage.

 Launch: After passing all the stage of the development, product will be launched in the
market for the customers, so that they can make use of it.
P6 Innovation business case for 4com company
4Com company was established in 1999, which has made an aim to improve the UK's
SME market's communication service. Business case is being developed in order to justify risk
of investing in an innovation, to convince administration to endorse idea which is being
developed and to make sure business thinks logically through everything. Innovation business
case of 4com consist of few steps which includes: Executive summary: 4com company wants to provide innovative telecommunication
services to its customers in entire UK, so as to attract more and more customers which
will help to increase their reputation in market (Gambardella and McGahan, 2010). The need: Main need of the company to cater all the corporate clients who can make
effective use of the business phone systems, business broadband and internet and
business phones. Solution: Solution must be very easy to understand, which should be helpful in solving
the basic needs and requirements of the customers so that they can make effective use of
the product which is being provided by the company. Why product is innovative: Next step in the process of innovation business plan, is to
know why the product of the company is innovative. 4Com is providing the business
phone system in which there is a use of innovative technology called HiHi which helps to
make the video calls from that business phone system. Customer research: This step will help 4com to make proper research of the target
market, that includes various customers on which they focusing. Company is basically
focusing on the corporate clients who make large use of the business phones (Ettlie and
Rosenthal, 2012). Design and development plans: After the whole market research, designing and
development of the product is being done in order to make product available in the
market. Requirement of investment: Finance and funds are the main part which is needed by
4com to make development of the product. Funds are also required for gathering different
resources.

 Expected benefits: Various benefits which a company will get from the innovative
products will be analysed in this step.
There are various different ways, by which 4com can access funding. They can use Boost
rapping method, in which own financial resources are being used by the company like money
from saving account (Bogers and West, 2012). Company can also use funds from their friends
and families, banks, financial institution etc.
TASK 4
P7 Tools used by an organisation to develop, retain and protect intellectual property and
knowledge
Acquisition of knowledge and management is very important for an organisation. For the
development of the new product Apple Inc. make use of the new technology in making iPod.
Virgin company also make use of the various methods in order protect intellectual property.
4Com has also used different tools in order to do so (Bogers and West, 2010). Company must
examine all the sources in order to get knowledge of business which will help in the growth and
also in the retention of employees. These methods will also help in the gaining the competitive
advantage. Customer knowledge: Basic information regarding taste of the customer and their
expectations will help in analysing the customers needs and requirements. With this
knowledge regarding development of the new product will be gathered by company. Suppliers and employees: By analysing the organisational culture and taking feedbacks,
information regarding the suppliers and employees will be gathered by the company so as
to increase and monitor the performance (Bagchi-Sen, 2007). Knowledge regarding market trends: It is very necessary to understand the market
trends, as it will help the 4com to have information regarding new technologies, and
competitors. Knowledge of the market helps in understanding strategies regarding
product, price, place and promotion. Knowledge of the macro environment: These are the external factors, which affects the
business in a way or other. It includes the political, economic, social, technological, legal
and environmental factors.

 Knowledge from trade institution and professional association: Knowledge can also be
gathered by 4com company with the help annual reports, books and journals and
magazines.
 Research and development: With the help of the proper research and development,
company will be able to gather necessary information which will help in the creation of
new ideas and plans. Process of research and development have been used by the Apple
Inc. which helps it to make innovative music player (Aarikka-Stenroos and Sandberg,
2012).
These all things will help in the protection of the intellectual property and knowledge. In
order to retain employees 4com can make use of the risk knowledge, assessment of performance
can be done, various retention ways can be used like provision of monetary and non- monetary
benefits.
CONCLUSION
From the above report it can be concluded that the innovation and commercialisation is
very necessary for a company as it helps to make new ideas and plans which is being made in the
process of product development. Innovation and commercialisation will be helpful for 4com
company to gather more and more customers in the new and existing market. It is analysed from
the report that 4P's of the innovation will be helpful in making various new plans in the
development of the product. Business plan for the innovation will help in making step by step by
analysis of the product development. This report will help in understanding the different
innovation and commercialisation theories and concepts effectively that are being applied in an
organisation.

REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
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Bagchi-Sen, S., 2007. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1). pp.61-75.
Ettlie, J.E. and Rosenthal, S.R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp.440-454.
Gambardella, A. and McGahan, A.M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2).
pp.262-271.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-
421.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kim, S.K. And et.al., 2011. The effect of R&D, technology commercialization capabilities and
innovation performance. Technological and Economic Development of Economy. (4).
pp.563-578.
Lindič, J., and et.al., 2011. Deploying information technologies for organizational innovation:
Lessons from case studies. International Journal of Information Management. 31(2).
pp.183-188.
Rafinejad, D., 2007. Innovation, product development and commercialization: Case studies and
key practices for market leadership. J. Ross Publishing.
Schoonmaker, M.G. and Carayannis, E.G., 2010. Assessing the value of regional innovation
networks. Journal of the Knowledge Economy. 1(1). pp.48-66.

Snow, C.C. And et.al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management. 28(1). pp.3-16.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Thore, S.A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
Walsh, P.R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Wonglimpiyarat, J., 2010. Commercialization strategies of technology: lessons from Silicon
Valley. The Journal of Technology Transfer. 35(2). pp.225-236.
Online
Difference Between Invention and Innovation. 2016. [online]. Available
through:<http://keydifferences.com/difference-between-invention-and-
innovation.html>. [Accessed on 16th May 2017].
Innovation Funnel. 2016. [online]. Available through:
<https://www.cleverism.com/lexicon/innovation-funnel-definition/>. [Accessed on 16th
May 2017].